Why TBM Cost Transparency Matters

Please note: This conversation was based on peer-to-peer engagement and shared experiences, not formal research. The insights shared reflect personal perspectives from within the community.

Welcome to the recap of our latest TBM Council Coffee Chat! Transitioning into a successful TBM journey—especially in those critical first 12–18 months—requires more than just software; it requires a shift in mindset. In our most recent session, "What’s the Point of TBM Cost Transparency?", hosts Jon Sober and Filip Landsberg led a vibrant discussion on moving beyond the "heavy lifting" of data imperfections to uncover the real "why" behind the numbers.

Attendees from various organizations shared valuable perspectives on this topic, diving deep into how visibility acts as a catalyst for improved financial performance, heightened operational efficiency, and better strategic decision-making. We moved past the technicalities of building a model and focused on how to drive tangible business outcomes.

Key Insights from the Discussion:

• Our community participants highlighted that transparency is not a destination, but a foundation for action. Here are the top takeaways from the session:

• Cost Transparency is a Baseline, Not a Use Case: Transparency itself doesn't provide value until someone takes an action or makes a decision based on that data. 

• Shifting from "Black Box" to "Defensible Answers": TBM moves IT away from being a mysterious cost center to a partner that can provide defensible, total-cost-of-ownership (TCO) views. 

• Data Quality is Improved by Visibility: Don't wait for "perfect data" to start; putting imperfect data into a transparency model is the fastest way to prioritize which data gaps need fixing first. 

• Marrying Cost to Value: True transparency allows leaders to explain why costs are growing by linking them directly to the business drivers and services consuming those resources. 

A Deeper Look into the Conversation

The heart of our conversation centered on the shift from managing "spend" to managing "consumption." One practitioner noted that while a finance team might look at a Microsoft contract as a single line item on a P&L, TBM allows the organization to marry that contract with infrastructure and labor costs to show the Total Cost of Ownership (TCO). This allows for a more productive conversation with the business: instead of just asking to "cut the budget," leaders can discuss which products or services provide the most value. 

We also explored the "brutal reality" that comes when organizations see their real numbers for the first time. Often, organizations use "hocus-pocus" numbers derived from complex, unverified spreadsheets. Moving to a TBM framework provides confidence. One participant shared how transparency helped them identify "ghost" storage arrays that were depreciating but not utilized, saving the company significant cash by reallocating existing resources rather than buying more. 

The group also discussed the new TBM Framework 2.0, noting how it helps align green "cost model" layers with top-level organizational value drivers like financial performance, risk, and even customer experience. By using the framework, TBM practitioners can bridge the gap between technical tactics and executive strategy. 

Keep the Conversation Going!

The Adoption Strategy Community is dedicated to helping you navigate these transitions. By joining our community, you can participate in open forums, attend these regular Coffee Chats, engage with peers who have "been there, done that," and contribute to the assets and knowledge base that help the entire TBM profession grow. Don't navigate the "heavy lifting" alone!

Next Steps: Engage and Learn More!

To continue your journey with Technology Business Management, we invite you to explore our website, log into TBM Connect here, dive deeper into the TBM framework, learn the fundamentals of TBM modeling, and review our latest research here—including the State of TBM report and our ongoing study of TBM salaries.  You can also explore our network of partners for additional resources and expertise, and subscribe to our newsletter to stay informed about the latest insights, events, and tools in the world of TBM.

Ready to connect, learn, and grow? Join one of our TBM Strategy Communities on TBM Connect to participate in open forums, attend upcoming Coffee Chats, and contribute to our growing body of shared knowledge!

What is a TBM Council Coffee Chat?

TBM Council Coffee Chats are informal, peer-to-peer engagements that create a relaxed space for community members to share real-world insights, ask questions, and learn from one another. It's all about connecting and growing together. These are not webinars or open forums; there are no slides or demos, just real conversations led by community members. The chats occur every 4 to 6 weeks for about 30 to 45 minutes. They are hosted by fellow TBM community members who are passionate about sharing their experiences and lessons learned. The content focuses on honest, practical conversation about the ‘how-tos’ of implementing and evolving TBM in organizations. Attendees are encouraged to participate by asking questions and sharing thoughts in the chat, making it a comfortable space for sharing. It’s the community that makes these chats valuable.